# September 2023 Question 1 2 out of 2 points Your bank account pays a 5 nominal rate of interest

2024 FIN 534 Week 5 Midterm Exam Part 2 Assignment Help

Question 1 2 out of 2 points Your bank account pays a 5 nominal rate of interest 2023

· Question 1 2 out of 2 points Your bank account pays a 5% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT? · Question 2 2 out of 2 points Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 8% is CORRECT? · Question 3 2 out of 2 points Which of the following statements regarding a 20-year (240-month) $225,000, fixed-rate mortgage is CORRECT? (Ignore taxes and transactions costs.) · Question 4 2 out of 2 points You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would increase the calculated value of the investment? · Question 5 2 out of 2 points You are considering two equally risky annuities, each of which pays $25,000 per year for 10 years. Investment ORD is an ordinary (or deferred) annuity, while Investment DUE is an annuity due. Which of the following statements is CORRECT? · Question 6 2 out of 2 points A $150,000 loan is to be amortized over 6 years, with annual end-of-year payments. Which of these statements is CORRECT? · Question 7 2 out of 2 points Nicholas Industries can issue a 20-year bond with a 6% annual coupon. This bond is not convertible, is not callable, and has no sinking fund. Alternatively, Nicholas could issue a 20-year bond that is convertible into common equity, may be called, and has a sinking fund. Which of the following most accurately describes the coupon rate that Nicholas would have to pay on the convertible, callable bond? · Question 8 2 out of 2 points A Treasury bond has an 8% annual coupon and a 7.5% yield to maturity. Which of the following statements is CORRECT? · Question 9 2 out of 2 points Which of the following statements is CORRECT? · Question 10 2 out of 2 points Bonds A and B are 15-year, $1,000 face value bonds. Bond A has a 7% annual coupon, while Bond B has a 9% annual coupon. Both bonds have a yield to maturity of 8%, which is expected to remain constant for the next 15 years. Which of the following statements is CORRECT? · Question 11 2 out of 2 points Which of the following events would make it more likely that a company would choose to call its outstanding callable bonds? · Question 12 2 out of 2 points Which of the following statements is CORRECT? · Question 13 2 out of 2 points A 10-year bond pays an annual coupon, its YTM is 8%, and it currently trades at a premium. Which of the following statements is CORRECT? · Question 14 2 out of 2 points Which of the following statements is CORRECT? (Assume that the risk-free rate is a constant.) · Question 15 2 out of 2 points Which of the following statements is CORRECT? · Question 16 2 out of 2 points Which of the following statements is CORRECT? · Question 17 2 out of 2 points Assume that the risk-free rate is 6% and the market risk premium is 5%. Given this information, which of the following statements is CORRECT? · Question 18 2 out of 2 points If markets are in equilibrium, which of the following conditions will exist? · Question 19 2 out of 2 points Which of the following statements is CORRECT? · Question 20 2 out of 2 points Which of the following statements is CORRECT? · Question 21 2 out of 2 points Stocks X and Y have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT? · Question 22 2 out of 2 points Which of the following statements is NOT CORRECT? · Question 23 2 out of 2 points If a firm’s expected growth rate increased then its required rate of return would · Question 24 2 out of 2 points Which of the following statements is CORRECT, assuming stocks are in equilibrium? · Question 25 2 out of 2 points Which of the following statements is CORRECT?